India has witnessed a significant boost in its solar photovoltaic (PV) manufacturing capacity in 2023, adding a staggering 24 GW, according to a recent report. This surge in capacity highlights the country's commitment to renewable energy and its efforts to establish itself as a global leader in solar power generation.

Gujarat Takes the Lead

Among the Indian states, Gujarat emerged as the leader in solar PV manufacturing capacity, accounting for an impressive 46.1% of the country's total capacity as of December 2023. Rajasthan and Tamil Nadu followed closely behind, with 9.3% and 7.6% respectively. These states have made substantial contributions to India's solar energy goals.

Solar Module and Cell Capacity

During the calendar year, India added 20.8 GW of solar module capacity and 3.2 GW of solar cell capacity. This brought the cumulative solar module manufacturing capacity to 64.5 GW, while the solar cell manufacturing capacity reached 5.8 GW by the end of 2023. These figures demonstrate India's progress in strengthening its domestic solar manufacturing capabilities.

Telangana Leads in Solar Cell Production

Telangana emerged as the top state in annual solar cell production capacity, accounting for an impressive 39%. Gujarat and Himachal Pradesh secured the second and third spots, contributing 34.7% and 13.9% respectively. This highlights the diverse geographical distribution of solar cell production facilities across the country.

Challenges and Opportunities

The new additions to manufacturing capacity in 2023 were primarily driven by the anticipated reimposition of the Approved List of Models and Manufacturers (ALMM) order, which is set to begin in April 2024. Additionally, India's solar manufacturing sector is eyeing potential export opportunities. However, Indian manufacturers face challenges in navigating geopolitical tensions and trade disputes, particularly with regard to competing with cheaper Chinese products.

Future Projections and Technology Trends

The report also sheds light on future projections and technology trends in India's solar manufacturing sector. Monocrystalline modules currently dominate the country's module production capacity, accounting for 67.5%. However, based on the current pipeline, monocrystalline modules are expected to represent 59.7% of annual module production capacity by 2026. Other technologies, such as tunnel oxide passivated contact (TOPCon) and thin film modules, are also gaining traction.

The Way Forward

As India continues to invest in expanding its solar panel production capacities, there is a need to address the complexities arising from geopolitical tensions and trade disputes. The country must strive to enhance the competitiveness of locally-produced modules in the face of cheaper Chinese alternatives. Furthermore, India should focus on boosting domestic demand for solar energy to consume the projected increase in module production over the next few years.

With continued efforts and investments in renewable energy, India is well-positioned to become a global leader in solar power generation and contribute to a greener and cleaner planet.